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Same trustee. Conversions made with the same trustee can be made by redesignating the traditional IRA as a Roth IRA, rather than opening a new account or issu- ing a new contract. Income. You must include in your gross income distribu- tions from a traditional IRA that you would have had to in- clude in income if you hadn’t converted them into a Roth IRA. These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. If you must include any amount in your gross in- come, you may have to increase your withholding or make estimated tax payments. See Pub. 505, Tax Withholding and Estimated Tax. More information. For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Rollover From Employer's Plan Into a Roth IRA You can roll over into a Roth IRA all or part of an eligible rollover distribution you receive from your (or your de- ceased spouse's): • Employer's qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan); • Annuity plan; • Tax-sheltered annuity plan (section 403(b) plan); or • Governmental deferred compensation plan (section 457 plan). Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. See Convert- ing From Any Traditional IRA Into a Roth IRA in chapter 1. Also, the rollover contribution must meet the rollover re- quirements that apply to the specific type of retirement plan. Rollover methods. You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the follow- ing ways. • Rollover. You can receive a distribution from a quali- fied retirement plan and roll it over (contribute) to a Roth IRA within 60 days after the distribution. Since the distribution is paid directly to you, the payer gener- ally must withhold 20% of it. For rules about making a rollover of a plan loan offset, including a qualified plan loan offset, see Time Limit for Making a Rollover Con- tribution in chapter 1. • Direct rollover option. Your employer's qualified plan must give you the option to have any part of an eligible rollover distribution paid directly to a Roth IRA. Generally, no tax is withheld from any part of the des- ignated distribution that is directly paid to the trustee of the Roth IRA. CAUTION ! Rollover by nonspouse beneficiary. If you are a desig- nated beneficiary (other than a surviving spouse) of a de- ceased employee, you can roll over all or part of an eligi- ble rollover distribution from one of the types of plans listed above into a Roth IRA. You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. You will determine your required minimum distributions in years after you make the rollover based on whether the employee died before his or her required beginning date for taking distributions from the plan. For more informa- tion, see Distributions after the employee’s death under Tax on Excess Accumulation in Pub. 575. Income. You must include in your gross income distribu- tions from a qualified retirement plan that you would have had to include in income if you hadn’t rolled them over into a Roth IRA. You don’t include in gross income any part of a distribution from a qualified retirement plan that is a re- turn of basis (after-tax contributions) to the plan that were taxable to you when paid. These amounts are normally in- cluded in income on your return for the year of the rollover from the qualified employer plan to a Roth IRA. If you must include any amount in your gross in- come, you may have to increase your withholding or make estimated tax payments. See Pub. 505, Tax Withholding and Estimated Tax. For more information on eligible rollover distributions from qualified retirement plans and withholding, see Roll- over From Employer's Plan Into an IRA in chapter 1. Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments If you received a military death gratuity or SGLI payment with respect to a death from injury that occurred after Oc- tober 6, 2001, you can contribute (roll over) all or part of the amount received to your Roth IRA. The contribution is treated as a qualified rollover contribution. The amount you can roll over to your Roth IRA can’t ex- ceed the total amount that you received reduced by any part of that amount that was contributed to a Coverdell ESA or another Roth IRA. Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between roll- overs. The rollover must be completed before the end of the 1-year period beginning on the date you received the pay- ment. The amount contributed to your Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that isn’t taxable when distributed. Rollover From a Roth IRA You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to an- other Roth IRA. Most of the rules for rollovers, described CAUTION ! Chapter 2 Roth IRAs Page 45